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Cottage Industries in India Page No GCM (S6)-04 Exam Code : RDRF Rural Development and Rural Finance in India SEMESTER - VI COMMERCE BLOCK - 1 KRISHNA KANTA HANDIQUI STATE OPEN UNIVERSITY Rural Development and Rural Finance In India (Block-1) 1 Subject Experts Professor Nayan Barua, Gauhati University Professor H.C. Gautam, Gauhati University Dr. S. K. Mahapatra, Gauhati University Course Coordinators : Dipankar Malakar, Ph.D. Commerce, KKHSOU SLM Preparation Team UNITS CONTRIBUTORS Unit-1 Rupali Talukdar, K.C.Das Commerce College Unit-3 Dr. Jayashree Chowdhury, Handiqui Girls College Unit- 2,4,5,6,7 Priyanka Sharma, Cotton University Editorial Team Content : Dr. Bidyut Bikash Baishya (Unit 1 & 2) Prof. N.N. Sarma (Unit 3,4,5,6 & 7) Structure, Format & Graphics : Dipankar Malakar, Ph.D., KKHSOU First Edition : Jan, 2020 ISBN : 978-93-89955-12-5 This Self Learning Material (SLM) of the Krishna Kanta Handiqui State Open University is made available under a Creative Commons Attribution-Non Commercial-ShareAlike4.0 License (International) : http.//creativecommons.org/licenses/by-nc-sa/4.0 Printed and published by Registrar on behalf of the Krishna Kanta Handiqui State Open University. Head Office : Patgaon, Rani Gate, Guwahati-781017; Web : www.kkhsou.in/web_new City Office: Housefed Complex, Dispur, Guwahati-781006 The University acknowledges with thanks the financial support provided by the Distance Education Bureau, UGC, New Delhi, for preparation of this study material. 2 Rural Development and Rural Finance In India (Block-1) BACHELOR OF COMMERCE RURAL DEVELOPMENT AND RURAL FINANCE IN INDIA CONTENTS UNIT 1: Basic Concepts of Rural Development Page No. : 7 – 26 Meaning and concept of rural development; Strategies of rural development; Needs of rural development; Some dilemmas of development. UNIT 2: Rural Economy of India Page No. : 27 – 45 Meaning, Size and structure of Indian rural economy; Role and importance of rural sector in India; characteristics of indian rural economy; Causes of rural backwardness. UNIT 3: Approaches to Rural Development Page No. : 46 – 60 Meaning and characteristics of community development; Programmes undertaken under community development; Gandhian approach to rural development; Meaning and causes of urban development; Problems and issues related to urban employment. UNIT 4: Cottage Industries in India Page No. : 61 – 72 Meaning and concept of cottage industries; Role of cottage industries in Indian economy; Government policy for cottage industries. UNIT 5: Rural Indebtedness in India Page No. : 73– 84 Meaning of Rural Indebtedness; Concept, nature and consequences rural indebtedness; Programs initiated for removal of rural indebtedness. UNIT 6: Rural Unemployment in India Page No. : 85 – 96 Meaning, Concept of unemployment; Types of unemployment; Characteristics of rural unemployment; Some employment generation measures. Rural Development and Rural Finance In India (Block-1) 3 UNIT 7: Poverty in Rural India Page No. : 97– 109 Concept of poverty and poverty line; Characteristics of poverty in rural India; Incidence of rural poverty in India; Some poverty eradication measures. 4 Rural Development and Rural Finance In India (Block-1) COURSE INTRODUCTION This course “Rural Development and Rural Finance” has been structured to give the learners of B. Com. (Finance Specialisation) programme the basic idea about the rural economy of India. The course is designed keeping in mind the present changes in the rural financial system. India lives in villages and rural areas. So, it is utmost import to study the rural economy of India. There are many issues related to rural development in India. BLOCK INTRODUCTION This is the First block of the course consisting seven units. In the first unit we will discuss the concept of rural development, strategies and importance of rural development, difference between urban and rural development. In the second unit we will discuss the size and structure of Indian rural economy, role and importance of rural sector in India, characteristics of Indian rural economy and causes of rural backwardness. In the third unit we will discuss the concept of community development characteristics of community development, Gandhian approach of rural development. Unit four discuss about cottage industries of India. Fifth unit discuss the issues related with rural indebtedness in India. Unit six and seven discuss about two very important issues of Indian economy-rural unemployment and poverty. While going through a unit, you will notice that some along-side boxes, which have been included to help you know some of the difficult, unseen terms. Some ‘‘ACTIVITY’’ (s) has been included to help you to apply your own thoughts. Again, we have included some relevant concepts in ‘‘LET US KNOW’’ along with the text. At the end of sections, you will get ‘‘CHECK YOUR PROGRESS’’ questions. These have been designed to self-check your progress of study. It will be better if you solve the problems put in these boxes immediately after you go through the sections of the units and then match your answers with ‘‘ANSWERS TO CHECK YOUR PROGRESS’’ given at the end of each unit. Rural Development and Rural Finance In India (Block-1) 5 6 Rural Development and Rural Finance In India (Block-1) UNIT 1 : BASIC CONCEPTS OF RURAL DEVELOPMENT UNIT STRUCTURE 1.1 Learning Objectives 1.2 Introduction 1.3 Concept and Definition of Rural Development 1.4 Strategies of Rural Development 1.5 Why is Rural Development Important in India? 1.6 Approaches to Rural Development in India 1.7 Major Financial Institutions for Rural Development in India 1.8 Some Dilemmas of Development 1.8.1 Rural Versus Urban Development 1.8.2 Agriculture Versus Industrial Development 1.8.3 Capital Versus Labour Dogma 1.8.4 Autonomous Versus Induced Development 1.9 Let Us Sum Up 1.10 Further Reading 1.11 Answer to Check Your Progress 1.12 Model Question 1.1 LEARNING OBJECTIVES After going through this unit, you will be able to: l explain the concept of rural development l know the strategies of rural development l know the needs of rural development l explain the dilemmas of development. 1.2 INTRODUCTION India lives in villages. Most of the Indians lives in rural areas. Hence development of rural areas of the country is the top priority. However, After Rural Development and Rural Finance In India (Block-1) 7 Unit 1 Basic Concepts of Rural Development 70 years of its independence rural areas of India are not having the basic amenities. In this Unit we will discuss same basic ideas of rural development. 1.3 CONCEPT AND DEFINITION OF RURAL DEVELOPMENT Rural development may be defined as overall development of rural areas to improve the quality of life of the rural people. It is an integrated process, which includes social, economic, political and spiritual development of the poor sections of the society. Rural development can be defined as, helping rural people and set the priorities in their own communities through effective and democratic bodies, by providing the local capacity investment in basic infrastructure and social services, justice, equity and security, dealing with the injustices of the past and ensuring safety and security of the rural population, especially that of women. Rural development is a strategy to enable a specific group of people, (poor rural women and men), to gain for themselves, and their children more of what they want and need. It involves helping the poorest among those who seek a livelihood in the rural areas to demand and control more of the benefits of rural development. Some of the areas which are challenging and need fresh initiatives for development in India include: l Development of human resources. l Land reforms. l Development of the locality specific productive resources of each locality. l Infrastructure development like electricity, irrigation, credit, marketing, transport facilities including construction of village roads and feeder roads to nearby highways, facilities for agriculture research and extension, and information dissemination. l Special measures for alleviation of poverty and bringing about significant improvement in the living conditions of the weaker sections of the population emphasising access to productive employment opportunities. 8 Rural Development and Rural Finance In India (Block-1) Basic Concepts of Rural Development Unit 1 As most of the people on earth live in rural areas, development in true sense cannot be expected without addressing the basic necessities of this huge population. In the era of modern science and technology, large amount of population in rural areas are still deprived of adequate nutrition, good education, proper communication, and social justice. Therefore, rural development is gaining importance in both the developed and developing countries. However, till today, there is no universally acceptable definition of rural development. As a concept, rural development is comprehensive and multidimensional. It means improving the quality of life of the people living in rural areas through agriculture and allied activities. As a phenomenon, rural development is the result of interactions between various physical, technological, economic, socio-cultural and institutional factors. For instance, if we want to develop rural area through agricultural activities, there is a need to think of changing the attitude of farmers toward modem agriculture; introduction of High Yeilding Varieties (HYV) of crops, mechanization of farming, use of fertilizers, pesticides; formation of Self Help Groups (SHGs) for microfinance; training
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